Bobst Group SA and CITO-SYSTEM GmbH have entered into exclusive negotiations regarding a potential majority participation by Bobst. As part of its strategy to provide end-to-end solutions for the production of packaging, Bobst recognizes the critical importance of tooling in an agile and sustainable packaging production chain. In a fast changing world, the partnership would leverage the strengths of both companies to drive innovation in tooling and more globally in the packaging production worldwide.
The proposed transaction is subject to the parties reaching a definitive agreement, with the closing of the transaction expected to occur in the first quarter of 2020. If a definitive agreement is reached, the transaction may be subject to customary regulatory approvals and potentially other conditions. There is no assurance, however, that any definitive agreement will be reached or that the closing of the contemplated transaction will occur.
In other news, Shanghai Eternal Machinery Co., Ltd, a member of Bobst Group, has acquired 70% of the equity of Yancheng Hongjing Machinery Technology Co., Ltd. The transaction, which was closed on January 6th, 2020, is part of a strategy to successfully improve and continuously widen the portfolio of machines of Eterna. With this partnership, Eterna intends to leverage the strengths of both companies to drive innovation of the folder gluer and continue to expand the business. Hongjing will become the competence center for folder-gluers of Eterna.